Overnight, though they lost some ground this morning. A lot to watch, china pmi backing expansion, the fed launches a new dollar repo operation. Jim, sounds like youre focused on testing, having talked to abbott last night. Right i think that myles white and now the new ceo recognize this, as they did during the aids epidemic, when you find out who has it, everything changes in this country, we can find out who has it, and doing a serilogical test, finding out from blood of people who have had it maybe a lot more people have had it than we knew. Maybe we can find who has got it, they can be quarantined. Already the carpers people are saying its only going to be med techs and hospitals. Myles and robert told me absolutely, this will devolve into a pregnancy test at home. How quickly, i dont know. Abbott labs is one of them dr. Gottlieb is going you know what ive seen science this is working in forgave earl avor ofd guys megs work with alex gorsky made me feel maybe next year we can go to march madness or a Football Game without putting our lives at risk. The numbers are still so terrible, but positive developments cannot be overlooked well get to some of the forecasts for q2 lets give viewers a chance who might have missed it last night. We launched two tests in it the last couple of weeks, theres still more theres a need for more. We have a collection of technologies and formats there are more tests coming. Antibiotic tests, a lateral flow version, which is more like a pregnancy test, it doesnt require instrumentation. See all right that is sort of thats on the horizon and in the nearterm, we are seeing some evidence that mitigation efforts are working in italy with the percentage growth at a oneweek low even some bay area doctors are n saying theyre not seeing the explosion of cases they were fearing. And getting the ppe to the hospitals. I look at this and i think we keep hearing its an unseen, unknown foe. We have to change that narrative. Its seen. We know who it is. Well get it i think if we continue to act that its ethereal and it can get us at any moment, it will. If we start believing in the signs were getting and understanding theres help on the way, not the 24hour test that doesnt seem to appear, not the ten days before you get the test, weve seen that. Not the clusters when we listen to a guy like miles white, these are not idle people theyve been there, theyve experienced what its like to have, as dr. Fauci say, every single patient die for about a decade my faith is in these people. My faith in covid is i see you, covid. Well get you. If you dont start thinking like that, well lose the war if we hate or like the president or try to figure out who the heck knows what were doing, take heart take heart in alex gorsky. Take heart in miles white and robert ford, these guys are the best in the country. I think theyre being treated as they dont know what theyre doing, but we can defeat this. We need that kind of testing youre talking about if were ever going to hope to get behavior back to anything like it once was. Im sure you have a lot of the conversations that i do with Business Leaders trying to understand what the world will be like when were sort of not even on the other side of this, but lets call it in the summer or after the summer, we hope are heap going to be willing to assemble and go to conferences will they be getting in the middle seat of an airplane or going to sports tournaments . So many concerts will they want to show up together in the office if you dont have that testing or the ability to know quickly who has it and who doesnt, its hard to imagine a world that returns to what it once was until we have a vaccine. You are getting a pmi number last night, lets say the chinese are lying their heads off, which would be a complete, you know, in keeping with Everything Else theyve done, maybe the pmi is 45, not 52. I count the number of cups drunk at starbucks, that makes sense i look at yum china. Again, i discount everything from the chinese i discount it because i think theyve been capitalists against us and dont deserve anything from us, besides they got the ppe. They got us, they got us because they make masks, they make gowns. We gave that up in 1990 when we decided to take 900,000 seamstresses and turn them into people who were hapless because we moved everything off shore. Im worried. Im trying to get people involved in government to say what happens on april 2nd when you dont pay your mortgage . What happens to these mortgage edifices this is another one, its not going to be convoluted as what we saw in 2007 to 2009, because were not as stupid as we were then or reckless, but i dont know what happens in the chain of mortgage command. I have a feeling the government doesnt either when you put a face on covid by saying we have got you, we know whether you have beaten us in five minutes or not,then you have a cohort of people, young people who are not just jack asses giving it to their parents and grandparents but able to go out. Its a start its a necessary start if were going to imagine that things will get back i dont talk to many people anymore who expect a vshaped recovery no. No thats wall street talk. The market is telling us one thing perhaps thats more optimistic, when you have conversations, i dont know, most executives im talking to are preparing for a brick wall, focused on liquidity and what they need to do. They dont know whats on the other side of this tats makie thats making them nervous ill tell you whats on the other side, costco, walmart, amazon thats all retail thats it. Kroger the supermarket chains i now look at a company and i say show me the balance sheet. Show me the balance sheet. We have Carnival Cruise, they cut the dividend, trying to raise capital. The markets have been open to raising capital for a lot of companies that you and i both know you would not lend capital to them unless you made an agreement where you were trying to make money off of a revolver and it comes back to haunt you i dont want to present myself as an optimist about business. I dont see anything good. You have the Small Business loan that you can apply for, the 1099 people are confused. Next week you will get unemployment im just saying forget the financial world, i think theres a chance that what i regard in central park of new york looks a lot like when you pull back and that battle of atlantis scene in gone with the wind and thats a tragedy. Maybe we can put an end to what looks like to me a moment where the south lost the civil war and you can see what happened. I think thats a sign that we lost the war against covid, but theres just a battle. The next level is won by scientists at rejogeneron or gilead, abbott, j j, somebody comes up with an antiviral. We have to get people off the ventilators out of the hospitals and then figure out the mortgages. Thats a key point. We saw the chinese build that hospital in january, january early february and now its our turn. It shouldnt come as a surprise. We can talk about the lack of preparation or planning maybe another time exactly exactly. Hey, theres plenty of time to investigate what happened to uss indianapolis and why all those sailors died thats the way i look at it. That was some big mistake by the navy plenty of time you can have a board of inquiry. Lets win first thats how i feel. You mentioned some of the Debt Offering going on and the furloughs we got from the likes of macys and now the gap. For more on that well get to courtney reagan. Good morning to you we actually have some new news and protocols out of walmart in order to help keep associates safe, so walmart has decided that theyre going to start doing temperature checks for their Associates First theyll start at the Fulfillment Centers and Distribution Centers then move to the hot spots, the areas of the country where weve seen the outbreak be the most intense theyre asking associates to take their temperatures at home and following this 6, 20, 100 rule six feet of social distancing, 20secondhand washing, and the temperature of 100 means you need to stay home. They expanded their protocols for what that means for sick leave and paid time off in order to keep their associates and the public safer theyre installing plexiglass shields. Theyre looking at doing oneway aisles for customers to make that flow a bit easier as far as limiting the number of people in the stores, they say its a delicate balance. We want to make sure individuals are able to get the food and essentials that they need. We have reduced our hours to have more appropriate and thorough cleaning. We also need to make sure people get what they need so well have to follow this on an hour by hour case by case basis, and one store and one location for walmart might look different than the protocols taken in another store because of this. Theyre also looking to procure masks and gloves for associates but say theyre stressing this will be voluntary. If an associate would feel more comfortable serving customers while wearing a mask and gloves, theyre traying ing ttrying to available. Not the n95 masks, but theyre trying to get enough masks walmart saying if we needed enough masks, we would need 7 million every week back to you. How does this contrast with the amazon employees who feel nervous going to work and walking out . Thats a good point weve seen some walkouts, strikeouts, sickouts with amazon at the Fulfillment Center in Staten Island and whole foods locations that amazon owns weve seen upset workers from ins instacart saying theyre not getting the right protective materials. So walmart is taking this a step further. Theyre not requg the masks and gloves, but theyre offering it if associates want it so some of these companies are asking for similar protections courtney reagan, well talk to you in a little while fascinating information the way shopping in this country will change probably forever. Cmeiatake a quickomrcl break. Dont go away. Im searching for info on options trading, and look, it feels like im just wasting time. Wasted time is wasted opportunity. Exactly. Thats why Td Ameritrade designed a firstofitskind, personalized education center. See, you just oh, this is easy. Yeah, and thats oh, just what i need. Courses on options trading, webcasts, tutorials. Yeah. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well exactly. Well except now, youre binge learning. Oh, i like that. Thank you, i just came up with that. Youre funny. Learn fast with the Td Ameritrade education center. Call 8662967451 or visit tdameritrade. Com learn. Get started today, and for a limited time, get up to 800 when you open and fund an account. Thats 8662967451, or tdameritrade. Com learn. Welcome back time for a mad dash. We throw it a long way, jim, over to you. What do we have . Weve got this incredible confluence of events going on with home and theyre theyre Mccormack Mccormack also has a Food Services business, thats bad for them they had a tough quarter china because they were shut down now china is open for business maybe china comes back all in all what it comes out to is people will sell the story. I think thats probably a mistake. I think that this cooking at home, it could be bigger than we think. Then mccormack will adjust when it comes to what i regard as being the food service that is such a Good Business it is just to show you how fraught, when you look at a company thats supposed to be a recessionproof stock, a lot of companies have done a lot of Different Things that made it so theyre no longer just one kind of thing going into food service, its an akichilles heel, and not everything is as it looks. Got it. Lets get a quick commercial break in here. We have the opening bell about 13 mutines away. Squawk on the street is coming right back welcome back lets get to meg tirrell for an update on the coronavirus. Some bright spots to tell you about. Signs across the country that the social distancing measures are having an impact in seattle, the Public Health department there putting out two reports yesterday saying that data shows that there was a reduction in movement in early march for anonamized mobility data and the transmission rate of the virus has dropped. In san francisco, reports that some hospitals are seeing a leveling off in cases. And a Company Using digital thermometers shows fooefers are declining. The lighter areas are decreasing levels of fever across the country and Public Health experts are saying this could be a leading indicator of potential cases of covid19. Around here in new york, Governor Cuomo citing a slowing in the rate of icu admissions. They are still going up, were still in a bad place here, but hes saying as of yesterday, that doubling is happening every six days from previously every two. Scott gottlieb saying he thinks new york may be potentially approaching a peak in new cases, that he expects to see late next week or in the next ten days so were still in a tough place, but approaching that but he does say states like florida and texas are in bad spots, and those will start accelerating you can see that here in this data showing the trajectories after the first 100 cases. Gottlieb on squawk this morning saying the texas data probably not picking up the level of concern in that state right now. So social distancing is working but we need to stick with it well put q1 to bed today, final day of the quarter plenty of news regarding ford, auto sales, zoom, dominos pizza, oil well get to all of it after the break. Welcome back to squawk on the street on this Tuesday Morning. Jim, as we watch the futures here, im looking at a chart this morning out of evercore for food sales for the week ending march 22nd conagra, 100 growth yearonyear stunning pantry loading numbers. I love this quarter they are on tonight. Why do i love it people are back in the center aisle. They understand those of us that have to go to the supermarket, theres things you want to have. You want to have frozen meals are up in terms of share, doing just terrific. Hot cocoa, meat sacks, pumpkin seeds, microwave popcorn, thats fun. Then i know david will be excited about this david, chef boyrdee is off the charts before this im sure you probably liked pasta i dont know where you got your pasta. I had moved on, but i reintroduced it to our diet. My children are getting used to what sustained me through my 20s. We are getting the cans now. They were out of the beef ravioli. David, youre so shortsighted. The great thing about chef boyardee, its your childrens children this is literally chef boyard boyardee, this stuff is aging with pleasure. I saved for you this can of chef boyardee. Guard it with your life, pass it on hunts tomato heres a piece of land the numbers are really good jim what . Numbers are good id be curious to see what conagra says dominos, they have all these different factors at play. Shelter in place, pantry loading, school closures, no live sports, and with all of that, theyre like the impact is just impossible to quantify. Credit suisse has a good story about out performance. The stayathome economy is in flux like you wouldnt believe plus you have millennials who change their mind every 42 ke , seconds, we like dominos, dont like it. We like popcorn, chef boyardee dominos was on a roll. A little bit of a setback now. When we talk about what happens in the new world, how many of the pizza places can afford their rent, electricity and insurance . The mom and pops versus dominos . We will have to deal with fewer players. They may not be the players you want i like the tomato pie you can get without cheese you should put the yello im hoping that a lot of the mom and pops can survive the sba loans are getting into plac place. Did you try to apply to one i havent you have to have a relationship with an existing bank a lot of it is coming through the banks themselves the sba program is moving forward. Thats significant thats important you have to keep your employees in order to have the Interest Rate or the loan forgiven. You just cut a check for the next three weeks i have to admit, its a painful check. Its interesting to pay people not to work. In europe the government does. Here, we do. Right and in europe theyre making payments directly to people. Europe, you get a raise from the government here, we have to figure out if we have enough money to pay im fortunate enough, i dont want people to say what a jerk fortunate enough to have the means to pay the payroll, but when people start looking at it, im sure people will say im going to close i dont want to pay the rent for nothing and the electric for nothing. Interesting on that front, kfc today says theyll grant franchisees 60 days grace period on current royalties well start to see that a lot in the Quick Service foods. Yes on that same subject, yum did raise 600 million bucks in the high yield market. The junk market. Companies are figuring out ways to get what they need. The credit markets are providing liquidity here, it would seem. They did pay yum paid 7. 75 yield for 2025 bonds 7. 75 . Yeah. According to reuters. Thats hideous. Ugly. Holy cow. Rh looking for some money. What i loved, nicole miller, she comes out and has a piece about chipotle saying they understand foodborne illness and secondly, piper, they have a great balance sheet. Were in good shape with them. [ bell rings ] final opening bell of q1, as you know by now the dow is on track for the worst q1 ever. Not the worst quarter, but the worst q1 jim, mcconnell is on the tape this morning speaking of aid, asked about stimulus 4. 0 says well need to wait and see if a fourth bill is needed pelosi did say it would potentially focus on recovery as weve been saying the last couple of days, mortgage markets, state governments, oversight budgets, things like that its time to do a 5 500 billion bond offering. Thats not facetious i think a lot of people would buy a war bond this is not a liberty bond that got everybody sick when they did a parade in philadelphia mcconnell said pandemicrelated Treasury Bonds are an interesting idea according to a radio interview this is one where i think the treasury secretary will convene with the president and get this done quickly theres no harm in trying. David was saying something about the sba. I got the application for the federal lo